Markets Dip on Tariff Announcement

President Trump's pledge to implement tariffs on imported steel and aluminum has sent commodity currencies and equities into decline as markets brace for heightened trade tensions.

Currency Movements

The Australian dollar, Canadian dollar, and Norwegian krone have all weakened following Trump's comments.

Equity Markets

Asian equity indices have experienced their steepest weekly drop, while Chinese and Hong Kong stocks have advanced.

Commodities

Iron ore prices have risen, and gold is approaching record levels.

Federal Reserve and Tariffs

Anticipation of Federal Reserve Chair Jerome Powell's congressional testimony and potential tariff announcements by Trump have exacerbated market uncertainty.

US Markets

Futures for S&P 500 and Nasdaq indicate a slight uptick in early Asian trading. US Treasury yields have declined.

Separate Developments

- Elon Musk's government efficiency team has reportedly identified irregularities in Treasury Department data.
- The S&P 500 index fell 1% on Friday, driven by tariff concerns and a decline in consumer sentiment.
- Hong Kong shares have bucked the trend, opening higher on Monday due to positive sentiment towards the nation's tech companies.

Key Events This Week

- Monday: China's retaliatory tariffs on US goods take effect.
- Tuesday: Norway GDP release, BOE Governor Bailey speaks, Fed Chairman Powell testifies.
- Wednesday: US CPI release, Fed Chairman Powell testifies to House panel.
- Thursday: Eurozone industrial production, Norges Bank Governor Bache's annual address.
- Friday: Eurozone GDP release.

Market Movements

- Stocks: S&P 500 futures up 0.2%, Hang Seng up 0.8%, Nikkei 225 futures unchanged.
- Currencies: Bloomberg Dollar Spot Index up 0.3%, Euro down 0.2%, Offshore Yuan unchanged.
- Cryptocurrencies: Bitcoin up 1%, Ether up 2.4%.
- Bonds: 10-year Treasury yield unchanged, 10-year Australian yield up 3 basis points.
- Commodities: WTI crude up 0.5%, Gold up 0.2%.